Louisiana bill targets sweepstakes sites and their financial backers
Louisiana lawmakers are preparing for a major fight over sweepstakes websites in the 2026 Regular Session, as a newly filed proposal aims to widen the state’s power to shut down what it considers illegal activity. House Bill 883, brought by Rep. Laurie Schlegel, would overhaul existing rules on gambling by computer and make it easier to go after not just sweepstakes operators, but the businesses that help them function.
The measure reshapes how Louisiana defines “gambling by computer.” The updated language would cover anyone who runs or helps run an online game, contest or lottery where players risk something of value for a shot at winning money or prizes. The bill specifically calls out sweepstakes platforms that use so-called “dual-currency systems,” where virtual coins can be redeemed for cash or cash equivalents if the game mirrors traditional casino-style play.
The proposal also spells out who else could be on the hook, including financial transaction providers such as payment processors, credit card companies and money transmitters. It also names platform providers, meaning companies that host, store or transmit website content tied to sweepstakes operations.
Louisiana sweepstakes bill calls for stronger penalties and harsher enforcement tools
If passed, the legislation would significantly raise the stakes for anyone offering illegal sweepstakes as a business. The maximum fine would jump from $20,000 to $100,000, while the possible prison sentence would remain capped at five years.
Those who knowingly assist sweepstakes activity, including payment processors and hosting services, could face fines of up to $20,000 and up to five years behind bars. If a person under 21 is involved, the financial penalties would double.
Each individual wager would count as a separate violation under the bill. Every promotion connected to illegal sweepstakes would also be treated as its own offense. Courts would be required to order the forfeiture of any profits linked to violations, adding another financial blow for operators.
The measure would bar financial transaction providers from deliberately processing payments tied to illegal sweepstakes and would prohibit platform providers from transmitting related information. Both types of companies could block suspicious transactions or communications on their own and would be shielded from civil liability for doing so. Ignoring a cease and desist notice could trigger additional penalties.
The proposal gives the attorney general and the chairman of the Louisiana Gaming Control Board authority to issue written cease and desist notices. Targets would have 10 days to comply. The attorney general would also maintain a public list of sweepstakes operators and associated websites that receive notices, along with any financial or platform providers involved. Being listed would serve as prima facie evidence that the recipient knew about the illegal conduct.
The bill further allows the attorney general to seek restraining orders and injunctions to shut down sweepstakes sites, freeze accounts and block transactions.
Louisiana’s push comes amid mounting scrutiny nationwide. The state has already sued major sweepstakes operators, including VGW and MW Services, accusing them of running illegal gambling enterprises. At one point in 2025, Louisiana appeared close to banning sweepstakes casinos entirely, only for a separate bill to stall after regulatory concerns surfaced.
Tennessee and other states are weighing similar crackdowns, signaling a general shift as lawmakers grapple with the fast growth of sweepstakes platforms.
Certain activities would remain legal in Louisiana, including licensed on-site gaming, fantasy sports contests allowed under state law and regulated sports wagering.
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